Climate Change Reporting

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UNCTAD, OECD, CDSB and GRI Workshop on Climate Change Reporting 16 March 2012, Room XXV Palais des Nations, Geneva SESSION II INFORMATION NEEDS OF A GREEN ECONOMY: PROMOTING NEW PRACTICES, ALIGNING EXISTING PRACTICES PRESENTED BY Eric Borremans Vice Chairman, Institutional Investors Group on Climate Change Head of SRI Development at BNP Paribas Investment Partners This material has been reproduced in the language and form as it was provided. The views expressed are those of the author and do not necessarily reflect the views of UNCTAD.

IIGCC Mission/Purpose IIGCC s ambition is to provide European investors with a voice on climate change, to engage with government and investors on addressing long-term risks and opportunities associated with climate change and to improve the disclosure, reporting and management of investments. IIGCC s approach IIGCC encourages policymakers to provide policy frameworks that facilitate the move to a low carbon economy and are consistent with the long term investment objectives. IIGCC encourages investors to take on a pro-active approach on climate change through adapting their own investment activities and processes in order to enhance and preserve longterm investment values. IIGCC seeks to improve the disclosure, reporting and management of climate-related risks and opportunities by companies.

IIGCC Members IIGCC currently has 77 members with over 7.5 trillion assets under management Amundi Environment Agency Pension Fund Mn Service AP1 (First Swedish National Pension Fund) Environmental Technologies Fund Northern Trust AP2 (Second Swedish National Pension Fund) Ethos Foundation Nordea Investment Funds AP3 (Third Swedish National Pension Fund) F&C Management Ltd Osmosis Investment Management AP4 (Fourth Swedish National Pension Fund) Five Oceans Asset Management PGGM Investments APG Asset Management Generation Investment Management LLP PKA ATP Greater Manchester Pension Fund Platina Partners Aviva Investors Grosvenor Fund Management Limited PRUPIM Baptist Union of Great Britain Henderson Global Investors Railpen Investments BBC Pension Trust Hermes Robeco Bedfordshire Pension Fund HgCapital Sampension BlackRock HSBC Investments Sarasin & Partners LLP BMS World Mission Hudson Clean Energy Partners Scottish Widows Investment Partnership BNP Paribas Investment Partners Impax Asset Management South Yorkshire Pensions Authority BT Pension Scheme Insight Investment Temporis Capital CB Richard Ellis Joseph Rowntree Charitable Trust The Church of England Pensions Board CCLA Investment Management Kent County Council Pension Fund The Church in Wales Central Finance Board of the Methodist Church Kleinwort Benson Investors The Roman Catholic Diocese of Plymouth CF Partners (UK) LLP Legal & General Investment Management The Roman Catholic Diocese of Portsmouth Church Commissioners for England London Borough of Hounslow Pension Fund The Roman Catholic Diocese of Salford Church of Sweden London Borough of Islington Pension Fund United Reformed Church Climate Change Capital London Borough of Newham Pension Fund Universities Superannuation Scheme Co-operative Asset Management London Pensions Fund Authority West Midlands Pension Fund Corporation of London Pension Fund Low Carbon Investors Pte Ltd West Yorkshire Pension Fund Dragon Capital Group Ltd. Merseyside Pension Fund William Leech Charitable Trust Earth Capital Partners Mercer Global Investments Europe Limited

IIGCC action with Companies

Improving disclosure and reporting Aim to provide investors with data essential to making informed investment decisions, and provide a basis for engaging with companies that do not report adequately. Focus on carbon intensive sectors 1. Electric Utilities 2. Automotive 3. Oil & Gas 4. Mining Global project conducted in collaboration with INCR (US) and IGCC Australia/New Zealand Disclosure frameworks have been adopted by the Carbon Disclosure Project in sector modules

Case Study 1. Electric Utilities Focus on European utilities Commissioned by IIGCC Conducted by CA Cheuvreux Based on CDP data and annual/sustainability reports The level of transparency on basic carbon data has dramatically increased in the sector since the publication of the IIGCC framework in 2007 Areas for improvement remain Consolidation method of CO2 emissions and allowances Portfolios of carbon offsets Emission reduction targets

Group GHG emissions by value chain stage GHG emissions from flaring of gas Production by hydrocarbon type (BOE) Assumed emissions intensity associated with each hydrocarbon 2009 proven reserves by hydrocarbon type Value of net asset exposure to extreme weather events 2009 proven reserves (in BOE) for key countries Do you have a strategy for non-fossil fuels product development? (Sales) (Capex + R&D) (EBITDA) (Net Assets) (Short description) Do regulatory requirements present significant risks? What are those risks? Do physical impacts of climate change present significant risks? What are those risks? Does climate change present other significant risks? What are those risks? Do regulatory requirements present significant What are those Do physical impacts of climate change present significant What are those Does climate change present other significant What are those 80% 70% 60% 50% 40% 30% 20% 10% 0% Case Study 2. Oil & Gas Covers 25 largest O&G companies globally Research financed by IIGCC member APG Based on public data and Goldman Sachs research Report to be released Q2 2012 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Oil & gas specific questions

The IIGCC Contact: Stephanie Pfeifer Executive Director Email: spfeifer@theclimategroup.org Or Morgan LaManna Research Assistant Email: mlanmanna@theclimategroup.org www.iigcc.org